Singapore Court Orders Seizure and Sale of Tata Power's Shares in Two Subsidiaries Over $650 Million Dispute

The Singapore International Commercial Court (SICC) has ordered the seizure and sale of shares held by Tata Power in two of its subsidiaries as part of an enforcement action linked to a $490.32 million arbitration award in favour of investment firm Kleros Capital Partners Limited. The outstanding amount, including interest and legal costs, has now exceeded $650 million, according to Kleros.

The enforcement orders cover Tata Power's shareholdings in Bhira Investments Pte Ltd and Tata Power International Pte Ltd.

The development follows the SICC's dismissal on August 26, 2026, of all applications filed by Tata Power to set aside the arbitration awards issued in Kleros's favour. The awards were subsequently recognised as judgments of the Singapore court.

Kleros said Tata Power has appealed against the SICC decision, but the appeal does not automatically suspend enforcement. The company has not sought a stay of enforcement so far, it added.

Dispute Dates Back to Russian Coal Mining Project in 2013

The dispute between Tata Power and Kleros originated in a proposed joint venture to develop the Krutogorovo coal deposit in Russia's Kamchatka region.

The two companies signed non-disclosure agreements in 2013 and 2014 to explore the possibility of developing the coal deposit together. Under these agreements, Kleros shared confidential business plans and geological information about the project with Tata Power.

Kleros alleged that Tata Power misused the confidential information to pursue the mining opportunity independently, excluding the investment firm from the project.

Tata Power eventually secured the mining opportunity in December 2017 but decided to abandon the project in November 2020.

Arbitration Tribunal Awards $490.32 Million in Damages

Kleros initiated arbitration proceedings against Tata Power in November 2020 before the Singapore International Arbitration Centre (SIAC).

A three-member arbitration tribunal heard the dispute and, on September 26, 2023, found that Tata Power had breached the agreements between the companies.

On July 1, 2025, a majority of the tribunal awarded Kleros $490.32 million in damages, along with simple interest at 5.33 per cent per annum from November 30, 2020, until the amount is paid in full.

According to Kleros, the award was final, binding and immediately payable, with enforcement possible across jurisdictions.

The investment firm said the outstanding debt has now crossed $650 million. This includes the principal damages of $490.32 million, interest accruing at approximately $71,600 per day and legal costs.

Tata Power Appeals Against Singapore Court Decision

Tata Power approached the Singapore International Commercial Court to challenge the arbitration awards. However, the court dismissed all its applications on August 26, 2026.

Although Tata Power has appealed against the decision, Kleros said the appeal does not prevent enforcement of the awards. It also stated that Tata Power has not obtained a stay of enforcement.

The latest order allowing the seizure and sale of shares in the two subsidiaries is part of the process to recover the amount awarded to Kleros.

Tata Power Files FIR Against Eight People in Mumbai

Meanwhile, Tata Power filed a First Information Report (FIR) on November 2, 2026, at Mumbai's MRA Marg police station, naming eight people, including two Kleros directors, an arbitrator, an expert witness, a litigation funder and two former Tata Power employees.

The company alleged that the former employees had forwarded confidential emails and documents to personal accounts and shared draft legal submissions, witness statements, lawyers' questionnaires and an independent project assessment with Kleros.

Tata Power also alleged that the expert witness and the arbitrator had prior connections with Kleros representatives and that the arbitration proceedings had been manipulated.

The FIR marks a separate legal development in the long-running dispute. According to Kleros, the criminal complaint does not affect the Singapore court's enforcement order.